‘Wildflower hall’: Himachal’s luxury retreat faces unresolved future
Photo used for indicative purpose only. Source Internet
ML Verma/ Shimla, Feb 24,
The high standards of hospitality set by the Oberoi Group in running the heritage Wildflower Hall hotel in Shimla may have influenced the government’s decision to hire a consultant to oversee the leasing process of the property. In a recent media interaction, Industry Minister Harshvardhan Chauhan announced that the state cabinet, under the leadership of Chief Minister Sukhvinder Singh Sukhu, has approved the hiring of a consultant for this purpose.
Himachal Pradesh is recognized for its core competencies in hospitality, horticulture, and hydropower, often referred to as the three ‘H’s, considered prime economic growth engines of the state. However, the search for external expertise to manage hospitality units reflects a failure in bureaucratic and political will. Many Himachal properties have long been on the international tourism map, yet the state’s inability to professionally manage them has led to outsourcing their operations. The lack of professionalism in state-run hospitality units has resulted in mismanagement and financial inefficiencies, forcing the government to relinquish control over such prime properties. The High Court’s recent stricture regarding the auction of government properties and the non-payment of arrears to employees has further exposed the executive’s inefficiency.
Also read:Deadlock over Hotel Wildflower Hall: Himachal Govt plans to invite bids
The state government, facing acute financial distress, cannot afford to delay crucial decisions regarding the management of its hospitality assets. Successive governments have struggled to take definitive action, despite several bureaucratic attempts to restructure these properties.
The decision to lease out the five-star Wildflower Hall hospitality unit comes after the government successfully reclaimed its possession following a prolonged legal battle. The question remains why the state executive is still searching for high-net-worth individuals to invest in high-end tourism when established indigenous hospitality firms, already operate in the sector. Many would say perhaps the failure to effectively run similar hospitality ventures in past may have prompted the decision. Another glaring example of premium properties being mismanaged is Town Hall’s high-end coffee house.
These hospitality units are not only built on prime public land but are also developed with public funds and loans. If the state fails to secure the right operators, the auctioning of such properties could result in substantial financial losses. The authorities must not repeat past mistakes, where legal entanglements and resource wastage turned potential revenue-generating assets into liabilities. The manner in which high-value assets are being handled raises concerns about future deals and the risk of opaque transactions.
Also read:Wildflower hall law suit: Major set back to Oberoi group as HP HC dismisses decades old litigation
Wildflower Hall, nestled amidst the picturesque landscapes of Himachal Pradesh, was at the center of a legal dispute for over two decades. The Himachal Pradesh government regained ownership of the hotel in January 2023 after enforcing a 2005 arbitration award.
Official records indicate that Wildflower Hall was originally owned by G.H.M. Batten, the private secretary of the Earl of Lytton. Over time, it changed hands multiple times and was ultimately converted into a luxury hotel. A devastating fire in 1993 left it in ruins, prompting the Himachal Pradesh Tourism Development Corporation (HPTDC) to enter into a joint venture with the Oberoi Group for redevelopment.
The agreement signed in 1995 led to the formation of Mashobra Resort Limited, with the expectation that the hotel would be operational within four years. However, project delays and compliance issues prompted the BJP-led government under P.K. Dhumal to terminate the agreement in 2002. A prolonged legal battle followed, with the Company Law Board initially ruling in favor of the Oberoi Group. The state government challenged the decision in the High Court, which ruled in 2023 that the Oberoi Group had failed to comply with the arbitration award. The Supreme Court upheld this decision in January 2024, allowing the government to take full control of the property.
Also read:Supreme court upholds eviction of EIH ltd from Wildflower hall in Shimla: Victory for Himachal Govt
With the state now firmly in charge, the government aims to lease out the property to the highest bidder through a professional and transparent process. The appointed consultant will evaluate various options and oversee the leasing process in accordance with global best practices. This move is expected to strengthen Himachal Pradesh’s tourism sector, attract investments, and generate employment opportunities while providing a valuable revenue stream for the state exchequer.
With its rich historical legacy and breathtaking surroundings, Wildflower Hall remains one of the most sought-after hospitality destinations in the region. The government is optimistic that a well-structured lease agreement will restore the hotel’s glory and enhance its contribution to Himachal Pradesh’s tourism industry.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
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